Many owner managed businesses who had taken out loans in the late 90’s and early 00’s may have entered into an interest rate swap arrangement at the same time of the loan.

These are complicated financial products so to keep things simple, the interest rate swap product was designed to protect the customer from increasing interest rates, which would increase the repayments and ultimately increase the risk of default.

In principle, this product seemed a good idea. The problems we are seeing now are that many customers were not aware what would happen should interest rates fall and that there is a minimum interest rate on the product. We have also been made aware that many customers obtaining a loan during this time were only offered the loan if they sign up to interest rate swap product.

What does this mean?

Due to the significant recession that has been worldwide, interest rates have plummeted and are currently holding at ½%. This means that customers are paying significantly higher payments on their loans that are crippling them in terms of cash flow.

Have I been mis-sold the product?

The main key indications are as follows:-

• The provider did not explain adequately the risks of the swap

• The provider did not explain the costs of the termination of the product (which are significant)

• The term of the swap was not in-line with the term of the loan

• The provider only offered the loan on the condition a swap was bought

How do I go about making a claim?

If you feel a claim is valid, you will need to contact the provider and inform them that you want to make a complaint and a claim. Most providers have already set aside funds to repay customers as instructed by the Financial Conduct Authority (FCA). This is likely to involve a letter to the provider formally instructing them of the compensation claim. Your provider has a legal duty to instruct you how to make the claim.

Alternatively, there are many compensation companies that have been setup to assist with the claim usually charging a percentage of funds claimed.

06 July 2013 - Filing deadline for P9D, P11D and P11d(b) - Employees are legally required to receive this document by this date.

19 July 2013 - Payment of Class 1A NI must be received by HMRC if paying by post.

22 July 2013 - Payment of class 1A NI must be received by HMRC if paying electronically.

31 July 2013 - Tax Credits applications are to be received by HMRC.

31 July 2013 - Second payment on account should be made on behalf of personal tax.

31 July 2013 - Most companies with a year end of 31 October 2012 are to be received by Companies House.

If you run a business and do not know whether these deadlines relate to you, contact your advisor at the earliest opportunity. Alternatively, if you have not engaged an agent, we would love to hear from you.